Billet
As expected, billet price became downward during week 10th
in Iran. It’s average price dropped from USD 472/mt on Saturday to USD 454 /mt ex-work
including 9% VAT for sizes 125 and 150 mm. A cargo of Khuzestan steel co billet
was traded at USD 435 /mt base price excluding VAT, and size of 125 mm was traded
at USD 404 /mt ex-work excluding VAT by a private factory, thus purchase thirst
at IME dropped.
The most important reasons behind downward trend were falling exchange
rates, falling demand from re-rollers and Lower long products prices. Approaching
the end of the year has led billet manufacturer to try to deliver goods faster.
The time limit for carriage of goods has accelerated this trend. Regardless of
this, downward trend of China's demand and its competition with Iranian exports
products should not be ignored.
Long Products
Long products were downward during last
week in Iran as demand declined more. As price had peaked during previous
weeks, higher debar prices at IME made market manipulators stayed back.
But I-beam price had a good demand at IME
due to low base price but average price of sizes 14,16,18 dropped from USD 523/mt
to USD 512.5/mt. Angle and channel also
experienced the same trend. Generally, market leaders tried last week to use
the current market situation the best and it was their last chance as in coming
days they will be faced with downward market expectation.
Flat Products
HRC 2 mm thickness from Mobarakeh Steel co started the week at USD
642/mt ex-work Esfahan including
9% VAT and ex-work Ahwaz price was USD 614 /mt. By end of the week prices were
respectively USD 621/mt and USD 588/mt ex-work including 9% VAT.
Average price for thickness 3-15 mm also dropped from USD 677/mt
to USD 643/mt ex-work including 9% VAT. Demand is low and delivery of cargoes
purchased at IME has begun from Mobarakeh Steel co.
Oxin co HRP thickness 20 mm or higher
was available in the market and its average price dropped from USD 606/mt to
USD 592/mt ex-work including 9% VAT. Demand is low and current supply level
satisfy market demand but slab price has risen and lower plate price seems
unlikely. Available HRP has been produced with slab at base price of USD 320/mt
but new production would be with slab of USD 428/mt ex-work excluding VAT.
CRC price dropped which is likely to
intensify in coming days due to lower demand. Average price on Saturday was USD
826/mt ex-work including 9% VAT, which reached USD 810/mt by end of the week,
while its supply is totally weak.
HDG was also downward like other
products from USD 1031/mt to USD 1012 /mt ex-work including 9% VAT.
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CBI
weekly average ex-rate for Steel Products (SANA): Rials 89,624/ 1USD
11 Mar,
2019
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Iran
Steel News Bulletin